WASHINGTON Nov 8 The council of U.S. regulators
will meet on Tuesday to discuss reforms for the $2.5 trillion
money market industry, the U.S. Treasury said on Thursday,
despite deep objections from some of the biggest money funds and
influential business lobby.
It was not clear whether the Financial Stability Oversight
Council would issue a formal proposal to reform the industry
next week. But council chairman, Treasury Secretary Timothy
Geithner, has been adamant that the group use its authority to
ensure that new protections are added.
The industry's primary regulator, the Securities and
Exchange Commission, failed to win enough internal support to
advance reforms earlier this year.
The council, which was established to mitigate risks in the
financial system, has the power to impose its own set of rules
on certain funds. However, that is not the Treasury Department's
Geithner has said he wants the council to consider
alternatives including naming some firms as "systemically
important" and imposing capital surcharges on banks that sponsor